What does FATF stand for in the banking sector?
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Financial Action Task Force
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Federal Anti-Terrorist Fund
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Financial Analysis Task Force
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Financial Anti-Terrorism Force
Which of the following is not a high-risk customer in banking?
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Salaried employee with a local bank account
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Business with large cash transactions
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Customer from a high-risk country
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Politically exposed person (PEP)
Who is considered a Politically Exposed Person (PEP) in banking?
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A corporate client with multiple transactions
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A government official or their close associates
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A foreign national opening a bank account
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Any customer who holds a large account balance
Under FATF guidelines, what level of due diligence is required for Politically Exposed Persons (PEPs)?
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Standard Due Diligence (SDD)
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Enhanced Due Diligence (EDD)
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Basic Know Your Customer (KYC)
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Periodic Customer Review (PCR)
What is the primary purpose of the "Know Your Customer" (KYC) process in banking?
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To encourage customer loyalty
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To promote bank marketing strategies
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To verify a customer's identity and assess risk
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To speed up transactions
Which stage of money laundering involves introducing illicit funds into the financial system?
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Conversion
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Integration
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Layering
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Placement
What is the main goal of money laundering?
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To hide the illegal source of money
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To increase bank savings
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To avoid paying taxes
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To invest in legal businesses
What is the final stage of money laundering?
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Integration
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Layering
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Placement
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Structuring
Which of these is a common method of money laundering?
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All of the above
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Shell companies
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Lottery fraud
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Online gaming transactions
What is a post-dated cheque?
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A cheque with a future date
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A cheque with no date
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A cheque dated in the past
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A cheque that is already cleared
